Skip to comments.Market experts are starting to see parallels to the financial crisis
Posted on 02/09/2018 8:26:01 AM PST by WilliamIII
To some market analysts and fund managers 2018 is beginning to look like the early days of the financial crisis of 2007-2009. They say its not the selloff itself that seems ominously familiar but the underlying causes of the selling.
Part of what brought down the stock market [this week] was very symptomatic and very similar to what happened in the financial crisis, said Aaron Kohli, interest rates strategist at BMO Capital Markets in New York. Secured products, leverage and complexity combining to form a selloff. When you look at 2008 a lot of it was there.
Much like in 2007, the United States is currently experiencing an economic expansion, the dollar is weakening to its lowest level in years, politicians are calling for 3% economic growth, U.S. economic data is generally positive, but the stock market is in free fall.
This time around, rather than mortgage-backed securities and collateralized debt obligations tied to the housing market, the culprit appears to be volatility trading instruments in stocks.
And the volatility-linked instruments are leading the charge downward.
(Excerpt) Read more at finance.yahoo.com ...
Yahoo needs to ask Krugman for expert opinion regards the matter.
or Yellen is gone and so is the pumping of Billions of Dollars into the Market
The economy is booming and the sky is falling!
Well, can’t have that, can we?
Got to have darkness to cover our evil ways, see?
Wonder how the new tax plan plays in all this.
Keep talking. You'll eventually propagate a self-fulfilling prophecy.
Exactly the same. Way too many overpriced houses, and junk mortgages, and derivatives of same. Yup. Exactly the same.
Yellen deliberately kept interest rates low during the Usurper’s reign of terror.
She was essentially his FED beotch. Instead of doing what was right (gradual increase as needed etc.), she deliberately kept them artificially low...below where they should have been. Like everything about the Usurper...it was a lie.
Everything libs touch is destroyed...everything...including the credibility of the FED.
Once President Trump came onboard, she pretty much dumped ALL the increase onto the economy in an effort to discredit Trump.
She should be in jail, or dangling from a rope, with the rest of em.
IMHO, once the economy “absorbs” this, things will settle out...it’s just gonna take some time.
Hopefully we have someone in charge that understands business and economics to make better decisions than the last time.
I have respected GWB but I am sad to say that I am beginning to view him as the left portrayed him while in office. I believe he is smarter than his reputation but I do not believe he is wise. I guess look at his daughters politics to see his fruit.
ANd they should be, if we can’t get rid of Trump using the DOJ and Intelligence Apparatus, we will destroy the Country to doom his presidency.
I read the headline and thought, “Ya’ think?”
Automotive, Student Loans, and Mortgages Again, plus credit card debt.
The Chinese, this time, will touch it off.
Why isn’t Dion Rabouin shorting like crazy and getting rich, rich rich?
The previous "financial crisis" was organized by the left in order to gain the White House.
This current "financial crisis", also orchestrated by the left, is a dry run to a much bigger "financial crisis" just before the 2018 elections. The left seeks power (House, Senate) so that they can take down the best President EVER.
These low down dirty dogs will stop at nothing to regain power. They are like a cornered Chihuahua with their snarling teeth and their little, tiny, weak bodies.
I am hearing this from friends on the West Coast.
I suspect the MSM is playing this Gloom-Doom story to backup their hatred of Trump.
Back in 2009-10, I told them about the growing Tea Party movement.
They had NEVER heard of it.
market “ex- spurts” say what???
There are loads of people who see the glass half full. With Obama, after 8 long years, that is what became the world of expectations.
Now that there is a businessman at the helm of the greatest business in the world, there will definitely be a coordinated turnaround for America and all her trading partners.
All the Christian based west will rise again, much to Obama’s and the obamanites chagrin.
The fact that the Michael Moore Left may turn out to be largely right about GWB keeps me awake at night.
Since last friday I’ve seen this as an ascending airplane reaching its service ceiling. It’s hit the max and is sputtering and will until it drops to within its maximum ceiling.
The only thing I glean from that is that it’s hit its peak and won’t go higher for quite a while.
“I guess look at his daughters politics to see his fruit.”
I have lib kids,and grandkids.
You can’t blame me for that.
“...Wonder who the big sellers were and how much they’ll make buying it back after it bottoms out....”
Take your pick.....mostly billionaire libs who have been called upon to “do their thing”.
The Fed stopped creating new money way back in October 2014, when the Dow was below 18,000.
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